Net working capital balance other than cash declined

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Reference no: EM131051027

In year 2, a company has net income of $1000, and depreciation expenses of $200. During the year, the company invested $400 in new capital assets, and its net working capital balance other than cash declined by $300. Based on these results and changes, the company’s cash balance at the end of year 2 would increase by $500 compared to the balance at the end of Year 1. True, False, uncertain. Explain.

Reference no: EM131051027

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